EUR/GBP Technical Analysis: Two-Month Down Trend Broken
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- EUR/GBP Technical Strategy: Flat
- Euro breaks two-month down trend vs. Pound, eyes resistance above 0.79
- Opting to remain on the sidelines until new short trade setup materializes
The Euro continued to push upward against the British Pound, breaking above trend line resistance guiding the down move since early April. Prices turned upward as expected as positive RSI divergence hinted at ebbing downside momentum after support was found below the 0.76 figure.
Near-term resistance is now in the 0.7906-28 area, marked by a horizontal pivot dating back to late February and the 61.8% Fibonacci retracement. A break above that exposes the 76.4% level at 0.7987. Alternatively, a daily close back below the 50% Fib at 0.7841 sees the next downside barrier at 0.7776, the 38.2% retracement.
A EUR/GBP short trade triggered at 0.7876. Partial profits were subsequently booked after the position met its first objective. The remaining exposure was closed with a modest profit after the trend line break. The long-term trend still seems to favor the downside, making the sidelines seem attractive until a new selling opportunity presents itself.
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